“It is crucial that we have (NPF) risk management system in order. We have to divide the funds that have had their risk management system certified by the Bank of Russia from those that have failed. Asset management opportunities will be different in each case. The certified ones will have more options. The uncertified ones will be essentially left with the same rigid investment declaration as today”, said CB First Deputy Chairman.

He stated that next year pension funds will start joining the guaranteed savings system en masse. Some funds may even join the system this year. This will broaden investment horizon to five years. Pension funds will be able to channel more cash into long-term instruments, including infrastructure bonds that some pension funds have already bought.

The funds will also have access to loan securitization instruments for small companies, as well as microfinance loans.

“Pension funds will have their pick. The question is what will they buy it with. We expect that by end-May they will receive pension savings for 2013. We hope that the guarantee system will convince the government to let taxpayer savings go into the pension system, instead of covering federal budget deficits. The fears that have led to the savings transfer freeze, will be dispelled by trustworthy funds joining the guarantee system”, Shevtsov said.

Financial markets megaregulator, Non-state Pension Funds industry reform, Project Group №1